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MATLACK REPORTS HIGHER FIRST QUARTER EARNINGS

 WILMINGTON, Del., Jan. 20 /PRNewswire/ -- Matlack Systems, Inc. (AMEX: MLK) today reported the results for its first fiscal quarter ended Dec. 31, 1992.
 Last year's results have been restated to reflect the retroactive adoption of a change in the method of recognizing revenue.
 Earnings before taxes were $612,000 compared with $152,000 last year. Net earnings for the quarter amounted to $349,000 or $.06 per share compared with $88,000 or $.01 per share before the effect of an accounting change in the prior year. Despite a revenue decline from a year ago, the company was able to reduce expenses enough to record higher earnings in its first quarter.
 Revenues for the quarter were $46,598,000 compared with $47,768,000 reported in the first quarter last year. The decline in revenue reflects a decrease in the number of loads carried offset in part by an improvement in revenue per load.
 The reduction in miles driven, productivity improvements and the continuation of the company's strategy to secure a more profitable mix of business contributed to the lower operating expenses. Depreciation expense decreased due to lower capital spending and interest expense declined as a result of lower short-term rates and the reduction of indebtedness.
 The company's financial position continued to improve as total indebtedness decreased to $27,377,000 from $38,788,000 a year ago and stockholders' equity reached $40,155,000.
 The company noted that while the chemical industry is recovering slowly, its requirements for transportation services are still below normal levels.
 Matlack Systems, Inc.'s major operation consists of Matlack, Inc., one of the largest carriers of bulk commodities by truck in North America. Matlack operates approximately 1,250 tractors and 2,700 trailers out of 80 terminals located in 32 states and four Canadian provinces.
 MATLACK SYSTEMS, INC.
 CONSOLIDATED STATEMENT OF OPERATIONS
 (in thousands; unaudited)
 Quarter ended Dec. 31 1992 1991(A)
 Revenues $46,598 $47,768
 Expenses:
 Operating 38,823 39,881
 Depreciation, net 2,505 2,979
 Selling and administrative 4,058 3,848
 Total 45,386 46,708
 Earnings before interest
 expense and income taxes 1,212 1,060
 Interest expense 600 908
 Earnings before income taxes and cumulative
 effect of change in accounting principle 612 152
 Income taxes 263 64
 Earnings before cumulative effect of
 change in accounting principle 349 88
 Cumulative effect (to Sept. 30, 1991)
 of change in accounting principle --- (190)
 Net earnings (loss) 349 (102)
 Earnings (loss) per share:
 From operations $.06 $.01
 Cumulative effect of change
 in accounting principle --- (.03)
 Earnings (loss) per share .06 (.02)
 Average common shares and
 equivalents outstanding 5,844 5,730
 (A) Restated to reflect the retroactive adoption of a change in the method of revenue recognition.
 MATLACK SYSTEMS, INC.
 CONSOLIDATED BALANCE SHEET
 (Dollars in thousands; unaudited)
 Dec. 31 1992 1991(A)
 ASSETS:
 Current assets:
 Cash $3,746 $2,592
 Accounts receivable, net 18,727 20,215
 Inventory of tires, parts and supplies 6,594 6,651
 Current deferred income taxes 2,049 ---
 Other current assets 2,994 2,650
 Total 34,110 32,108
 Property and equipment, at cost, net
 of accumulated depreciation 63,124 71,000
 Other assets 274 294
 Total 97,508 103,402
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Current liabilities:
 Accounts payable 8,720 6,778
 Accrued liabilities 7,935 8,539
 Income taxes payable 331 905
 Current maturities of equipment financing
 obligations and long-term debt 3,796 5,641
 Total 20,782 21,863
 Equipment financing obligations 20,024 29,208
 Long-term debt 3,557 3,939
 Deferred income taxes 8,402 5,455
 Other liabilities 4,588 5,542
 Shareholders' equity 40,155 37,395
 Total 97,508 103,402
 (A) Restated to reflect the retroactive adoption of a change in the method of revenue recognition.
 MATLACK SYSTEMS, INC.
 CONSOLIDATED STATEMENT OF CASH FLOWS
 (Dollars in thousands; unaudited)
 Quarter ended Dec. 31 1992 1991(A)
 Cash flows from operating activities:
 Net earnings (loss) $349 ($102)
 Reconciliation of net earnings (loss) to
 net cash flows from operating activities:
 Depreciation 2,516 3,045
 Current and deferred income taxes (304) 1
 Decrease in accounts receivable 2,341 990
 (Decrease) in accounts payable and
 accrued liabilities (2,873) (1,406)
 Other, net (1,494) (547)
 Net cash flows from operating activities 535 1,981
 Cash flows from investing activities:
 Purchase of property and equipment (1,434) (1,174)
 Proceeds from the sale of equipment 81 252
 Net cash flows used
 in investing activities (1,353) (922)
 Cash flows from financing activities:
 Proceeds of equipment financing
 obligations 7,500 ---
 Repayment of equipment financing
 obligations (7,169) (1,724)
 Repayment of long-term debt (84) (88)
 Exercise of stock options 43 ---
 Net cash flows from (used in) financing
 activities 290 (1,812)
 Net (decrease) in cash (528) (753)
 Cash beginning of period 4,274 3,345
 Cash end of period 3,746 2,592
 Supplemental information:
 Interest paid 547 1,034
 Income taxes paid 567 75
 (A) Restated to reflect the retroactive adoption of a change in the method of revenue recognition.
 -0- 1/20/93
 /CONTACT: Patrick J. Bagley, vp and treasurer of Matlack Systems, 302-426-2930/
 (MLK)


CO: Matlack Systems, Inc. ST: Delaware IN: TRN SU: ERN

MP-MK -- PH001 -- 6775 01/20/93 10:04 EST
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Publication:PR Newswire
Date:Jan 20, 1993
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